We’ve already talked about the push for alternative energy sources that are part and parcel of the Inflation Reduction Act (sic). $ 370 billion for clean energy and climate control is certainly a big investment.

And, there are all sorts of tax credits- even one to upgrade our home circuit breaker boxes..  Prior to the enactment of this bill, the tax credit for energy storage used to be limited to those facilities that were paired with solar energy supplies. (That’s why some 93% of battery storage systems were co-located with solar systems.)  But now that credit applies to any energy storage system (and the credit is not just 30%; it can be augmented up to 50% with certain adjustments- domestic manufacture and if the facility is located where coal, oil, or natural gas were the dominant supply)- one of the big missing pieces in our infrastructure program.

This- along with transmission lines upgrades- is the way we can finally transform our grid to be able to handle any sort of alternative energy source.

There are also tax credits for electric heat pumps, rooftop solar panels, and a $ 3 billion allocation for loans to erect new power lines that would form the basis for our new electric grid.

There have been extensions and modifications of other energy credits, as well.  The Residential Energy Efficient and Property Credit has been replaced by The Residential Clean Energy Credit.  This provision lasts for two years-2023 and 2024. The credit depends upon when the improvements/service changes occurred.

The Energy Efficient Commercial Buildings Deduction is extended by the Inflation Reduction Act.  This is for folks (homeowners or landlords) who rent out their property.  This provides a tax deduction of up to $1.80 per square foot, if there is a 50% reduction in heating and cooling costs for the building.  There are also partial credits available, should the 50% threshold not be crossed.

The Energy Efficient Home Credit has been extended through 31 December 2031.   This yields a credit ranging between $2500 and $5000 for using devices that meet various Energy Star Criteria.

If states establish the program of High Efficiency Electric Home Rebate Programs (the Feds require the states to become involved), rebates up to $14K can accrue. These are income dependent, as well.  The program will cover heat pump water heaters, heat pump space cooling/heating, electric stoves and cooktops, electric heat pump clothes dryers, home electric panels, wiring improvements, and insulation and ventilation systems.

And, we can’t forget that to satisfy Senator Manchin, there are a slew of oil/gas leasing provisions in this bill.  (This includes the revival of previously canceled programs in the Gulf of Mexico and Alaska [but not the Arctic National Wildlife Refuge]).  Those provisions have ticked off anti-leasing folks; but they probably don’t realize that these provisions will also make it easier to get wind/solar, transmission lines, and lithium mine approvals- because the land use provisions have been changed.  Which means local opposition (complaints about loss of farmland, property value diminishment, potential environmental side effects) is going to be muted.  Think of the Palen Solar Farm (the 457 MW facility in the California Desert) and its opposition.

This is the most amount of funds we’ve allocated to address our climate change issues.  It’s way past time.